|By Marketwired .||
|December 13, 2013 01:21 PM EST||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 12/13/13 -- Sennen Potash Corporation (TSX VENTURE: SN) ("Sennen" or the "Company") is pleased to announce that it has renegotiated the terms of its acquisition of an interest in the Monument Potash Project in South East Utah and South West Colorado ("Monument"), as previously disclosed in news releases dated October 15, 2012 and December 20, 2012.
ORIGINAL OPTION TERMS REVISED OPTION TERMS First Earn-in 40% 70% First Earn-in 3 wells 1 well Commitment US$9Mwork program US$4.5M work program(1) 50M shares 50M shares US$4.1M cash US$4.1M cash Option Expiration December 31, 2014 December 31, 2015 Date Second Earn-in 51% 75.5% Second Earn-in Complete feasibility study Complete pre-feasibility Commitment study Note 1: In addition to funds already spent by Sennen to date
Under the new agreement (the "Revised Agreement"), Sennen will have the right to acquire a 70% interest in Monument by incurring further expenditures of US $4.5 Million by December 31, 2015.
Further, under the Revised Agreement, Sennen also has the right to acquire a further 5.5% interest in Monument, for a total of 75.5%, by completing a pre-feasibility study on Monument within 24 months of acquiring the initial 70% interest.
The share and cash consideration contemplated under the Original Agreement remains the same in the Revised Agreement and, in this regard, the Company has agreed to issue the final tranche of 20 million common shares (for a total issuance of 50 common million shares) on or before December 20, 2013.
Ian Rozier, President and CEO of Sennen said: "Given our ongoing focus on capital discipline and maximizing shareholder returns, we are delighted to have agreed to a mutually beneficial revision of the option terms with our partners at Paradox. The revised terms allow Sennen to reduce its capital commitments, extend the earn-in time frame by a full year and substantially increase the project interest to be earned. Based on work completed to date, we continue to believe Monument to be an attractive potentially high grade potash project with significant upside and look forward to advancing our technical suite in the coming months."
Sennen has, together with our industry partners, assembled an experienced team of multi-disciplined professionals to focus on the exploration and responsible development of the Monument Potash Project. Monument is comprised of over 100,000 net mineral acres of highly contiguous mineral leases in South East Utah and South West Colorado and is located less than 70 miles from Intrepid Potash Corp.'s operating Cane Creek Solution Mine. Sennen is currently undertaking exploration work required to delineate the potash resource estimate.
Neither the TSX Venture Exchange (the "TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has reviewed, nor do they accept responsibility for the adequacy or accuracy of, this release.